The Government added the move to replicate that available for younger travellers, which has been in place since 1974, will “help young people who are feeling the squeeze to keep more of their hard-earned cash”.

The announcement comes months after Mr Hammond asked Conservative backbenchers for submissions on how to close the generational gap - insisting the Budget must help younger voters.

AIRLINE INSOLVENCY

Mr Hammond is also set to announce a review, led by an independent chair, into airline insolvency arrangements.

The pledge comes months after the airline Monarch collapsed, leaving 110,000 passengers without a return flight.

The incident forced the Government and Civil Aviation Authority to launch, what the former branded, “the largest peacetime repatriation for all overseas passengers.”

Ministers said the incident “highlighted the uneven nature of consumer protection when an airline fails” and say the review work to make “holidaymakers feel safe” about future travel plans.

They say the review will produce an interim report by summer 2018, with a final report out by the end of next year.